More than 75 percent of the 1,332 small business owners/executives surveyed by Harris Interactive said health care reform will make insurance coverage for their employees more expensive. More than 70 percent said the law makes it harder for them to hire more employees.

The law's employer mandate also is keeping some small businesses from growing, the survey found. Under the law, businesses with 50 or more full-time employees must provide health insurance to their employees by 2014 or pay a penalty to the government. To avoid this mandate, 32 percent of small businesses plan to reduce hiring, the survey found, and 31 percent plan to cut back workers' hours in order to reduce their number of full-time employees.

Small business owners' sour outlook for health care reform is one reason why 79 percent of them still think the U.S. economy is on the wrong track, according to the survey.